Genesis Global Trading has Loaned $553 Million in Crypto in 2018

Genesis Global Trading has Loaned $553 Million in Crypto in 2018

Genesis Global Trading has loaned out over half a billion dollars’ worth of digital assets so far in 2018, to institutional borrowers including hedge funds and other financial firms. The New York-based firm began lending digital currencies in March and has $130 million in active loans denominated in Bitcoin, Ether, XRP, Bitcoin Cash and other

Genesis Global Trading has loaned out over half a billion dollars’ worth of digital assets so far in 2018, to institutional borrowers including hedge funds and other financial firms.

The New York-based firm began lending digital currencies in March and has $130 million in active loans denominated in Bitcoin, Ether, XRP, Bitcoin Cash and other coins, it said Thursday in a statement.

Total cash flow reached $553 million for all supported assets.

“Over the past year, through client feedback and the rise of derivative marketplaces, we saw a meaningful increase in the number of market participants wanting to borrow and/or lend digital currencies,” the company summarized about its motivation to move into the loans market.

These loans are generally used to short the market, with big institutional investors betting on crypto prices falling in order to profit from these loans.

The type of client using the platform has also changed over time, with hedge funds dominating at the start but since giving way to trading and arbitrage firms.